Indonesian share prices closed down 0.41 percent on Thursday on profit-taking but losses were trimmed by another 25 basis points cut in the benchmark interest rate, dealers said.
They said the rate announcement helped offset negative sentiment prompted by Wall Street's overnight fall and a media report saying the government was considering hiking the transaction tax for share trades.
The composite index closed down 8.633 points at 2,093.811, off an intraday low of 2,082.355 and a high of 2,105.604. Volume was 10.25 billion shares worth 6.14 trillion rupiah (699.32 million dollars).
Declines led advances 115 to 77, while 53 stocks were changed. The rupiah was trading at 8,875/8,780 to the dollar against 8,895/8,905 late Wednesday. "The rate cut provided a boost to sentiment," a Panin Securities dealer said.
With today's cut, the central bank has now trimmed its benchmark BI rate accumulative 425 basis points since May 2006. The rate now stands at 8.50 percent.
Among losers, nickel miner Antam fell 300 to 13,000, tin miner Timah shed 50 to 11,250, and coal miner Bukit Asam dropped 150 to 6,300, off a high of 7,100. Bukit Asam's stock price had risen sharply in early trade on news that the firm is planning to acquire some other coal firms.
Meanwhile, Bank Mandiri lost 50 to 3,150, Bank Rakyat Indonesia fell 50 to 6,150, Bank Danamon dropped 50 to 7,500 and Astra International lost 500 to 16,250, while Bumi Resources shed 30 to 1,860.
Gains in some selected big caps though helped cap the main index's slide. Index heavyweight Telkom gained 50 to 9,700, noodle maker Indofood added 10 to 1,890, Bank Central Asia rose 100 to 5,500, Inco increased 1,400 to 51,600, and Astra Agro added 50 to 15,300.